Markets are mixed, weighing up a trade truce between China and the US against emerging doubts over whether the Fed can cut again this year. The ECB and the BoJ hold rates, as expected, and New Zealand business confidence lifts.
In our Deep-Dive interview, ANZ International Economist Tom Kenny analyses Fed chair Jerome Powell’s comments on the risks around a December rate cut.
5 things to know in 5 minutes:
Markets were mixed, weighing up news of a truce in the tit-for-tat of tariffs between China and the US against uncertainty about future Fed rate cuts. ANZ Head of Asia Research Khoon Goh sifts through the details of the trade talks.
Khoon says it was important the talks showed common understanding in certain areas.
The European Central Bank held its key deposit rate at 2.0% and President Christine Lagarde was non-committal about future rates, but ANZ Economist Henry Russell says the ECB may need to cut again late in the year.
The Bank of Japan held rates as expected yesterday at 0.5%, with two dissenters favouring a hike. ANZ International Economist Tom Kenny says Governor Ueda indicated a cautious approach would be followed.
New Zealand business confidence jumped eight points to 58 in October, according to ANZ’s Business Outlook survey. ANZ New Zealand Chief Economist Sharon Zollner says the bump was led by the retail sector.
Cheers,
Bernard.
PS: Catch you next week with further market reaction to those US-China trade talks.
